Letter: Selling the Trump name is a dangerous debt game
To the Editor:
When Donald Trump had real businesses like an airline, casinos, etc., he built and ran them with a heavy debt load. When his luck ran out, he left bond participants and his lender banks holding the bag. Consequently they forced him to sell some of his properties: the airline, the Plaza Hotel, etc., and put him on a millionaire’s allowance until the debt was repaid. And then the banks stopped lending him money.
So Trump Inc. morphed into something simpler: selling the Trump name. Think Trump university, Trump condos, Trump steaks, Trump ties, etc., and he expanded the Trump golf clubs, financed primarily by Russian oligarchs (whatever their motivation). This formula was successful for the Trumps.
But Trump can’t quite duplicate that card trick as POTUS so he’s doing what he knows best: running the United States like he did his businesses — with a humongous debt load. And he no longer has to play with those nasty oligarchs who could blow up Trump Inc. in a nanosecond by cashing in (ergo, his political stance on Russia).
Now Trump has a compliant Congress and taxpayer dollars, so guess who will be left holding the bag this time? Taxpayers will be treated just like his former banks and bond holders. And, as for the stock market that only 50% of us are invested in, watch out.
If you have a 401(k), adjustable loans or use credit cards, your income might go down and your interest rates might go up, house prices could fall, become harder to sell (or buy), construction, food, cars, appliances, national debt costs (interest) might become more expensive. All that put together is a formula for disaster.
As for Trump’s business acumen? It will have come full circle.